How ridiculously short-sighted of the State of Florida. Public investment, private profit. Not to mention, the source of the water is in drought condition already.
Nestle came into Florida and managed to pull off quite the coup.
The company got a permit to take water belonging to Floridians — hundreds of millions of gallons a year from a spring in a state park — at no cost to Nestle.
No taxes. No fees. Just a $230 permit to pump water until 2018.
Nestle bottles that water, ships it throughout the Southeast — much of it to Georgia and the Carolinas — and makes millions upon millions of dollars in profits on it.
The state granted Nestle permission to draw so much water against the strong recommendation of the local water management district staff. Because drought conditions were stressing the Madison Blue Spring, the staff said the amount of water drawn on the permit should be cut by more than two-thirds.
[From Environment: Water: Water's trip to your glass is complicated]
I'm pretty sure Nestlé has a similar deal pending in Michigan to pump fresh water out of the Great Lakes for a nominal fee.
And like always, the corporation's response is: "But, but, but we're creating jobs!!" Of course, the number of jobs is quite small. In this case, 300 jobs (or less).In a memo dated Nov. 15, 2002, the water management district staff recommended reducing the amount of water Nestle could draw under the permit it would obtain from 1.47-million gallons a day to 400,000 a day.
Historically, the average flow of the spring is 55-million gallons a day, but it was down to 34-million gallons a day.
"The current drought has reduced the flow of Madison Blue Springs to record lows," Jon Dinges, director of resource management, wrote to the water management district's governing board. "The drought has become severe since the permit was issued, thus requiring a reduction of the (average daily withdrawal) to ensure resource protection."
In January 2003, the governing board — gubernatorial appointees who make final decisions about water use — heard Nestle's pitch to continue the permit as originally approved.
The company promised to invest $100-million in the plant over seven years and create 300 jobs — but only if the permit remained as it had been when first approved for Bruic.
To make the travesty even more ridiculous, Jeb Bush's appointees gave Nestlé a massive tax subsidy:
As an added incentive for Nestle, the state approved a tax refund of up to $1.68-million for the Madison bottling operation. To date, Nestle has received two refunds totaling $196,000 and requested a third tax refund.(H/T)
Nestle had promised to create 300 jobs over five years. The most people it has ever employed was about 250. The number dropped to 205 late last year, 46 of them from Georgia, which Nestle defends as common for a work force along a state line.
"The company got a permit to take water belonging to Floridians — hundreds of millions of gallons a year from a spring in a state park"
Not exactly. They bought land at the spring and a bottling permit that both predate the state park. It's fairly rare that land doesn't include water/mineral/etc rights to the water/etc on said land.
From the St Pete Times via a simple Google search:
Anna Bruic of the small town of Lee owned 65 acres surrounding the spring that she was looking to develop. In 1998, Bruic received a permit to bottle water from Madison Blue. She never used the permit.
In October 2000, she sold 38 acres to the state. The spring, which bubbles up to a limestone basin on the west bank of the Withlacoochee River, became Madison Blue Springs State Park.
Months later, she sold 2 acres of her land and her water-bottling permit to Blue Springs LLC, owned by Bill Blanchard of Tampa. He in turn negotiated to sell the land and the permit to Nestle.